This has me confused. I had a nice shiny working five months old iPod photo. On 26th June, a new version of the iPod update software was released. I downloaded it, plugged in the iPod and tried to update. It would not recognise the iPod. I tried to restore, it said there was a disk failure. All that I could get on the iPod was a picture of a folder and a clicking sound. It would not reset. I sent it back to Apple and yesterday received a replacement iPod. I charged it up overnight, played with the menus, everything looked fine. Enclosed with it was a piece of paper stating that the iPod was formatted to work with a Mac. To use with a PC install the software. So I plug it in, call up the update software, and guess what, same again. I now have a shiny new piece of junk with a folder icon and a clicking sound that will not reset. Before this I would not have thought it likely, however, is it possible that the latest iPod software kills iPods? Has anyone else upgraded successfully?